Department of Defense Annual Report



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Type of Agreement: Other Transaction for Prototype
Title: Advanced Mission Computer and Displays (AMC&D)
Awarding Office: Department of the Navy, Naval Air Systems Command
Awardee: McDonnell Douglas, a Wholly Owned Subsidiary of the Boeing Corporation
Effective Date: 02 Jul 1998
Estimated Completion or Expiration Date: 30 Oct 2000
U. S. Government Dollars: $59,941,841
Non Government Dollars: $0
Dollars Returned to Government Account: $ 0
Technical objectives of this effort including the technology areas in which the project was conducted:

This is a follow-on report for the extension of the other transaction agreement (OTA) and exercise of Phase III of the program. The phase III effort was for the fabrication of additional prototype Mission Processors (MP’s), Display Processors and forward and aft Display Heads (DH’s) for the F/A-18 and AV-8B platforms.


The technical objectives of the effort covered under this OTA are proof of concept, design, and prototype development of the AMC&D system. The AMC&D system will be designed as the standard mission computer and display system for naval aviation and is targeted to replace existing aging/obsolete commercially furnished displays and the AN/AYK-14 mission computer. The AMC&D system will consist of modular components integrated on an open systems architecture which will include a set of common processors, aircraft interface control cards, and a variety of display head sizes, and will be designed to facilitate operation and support savings initiatives.
Extent to which the cooperative agreement or other transaction has contributed to a broadening of the technology and industrial base available for meeting Department of Defense needs:

The contractor teaming arrangement under the OTA, consisting of MDC as the prime contractor, General Dynamics Information Systems Inc., and Honeywell, Inc, as second tier subcontractors, and DY-4, Wind River, and Green Hill as third tier subcontractors, provides for an increase utilization of commercial technology into military equipment. The flexibility of the terms, conditions, and administration of the OTA affords DY-4, Wind River and Green Hill, who are not traditional DoD contractors and do not have the systems in place to otherwise perform on large DoD procurement contracts, an opportunity to have their products introduced into a fielded military system. Such terms also include; the use of Generally Accepted Accounting Principles (GAAP) in lieu of cost accounting principles and procedures which allows the Navy to leverage off MDC’s concurrent IRAD initiatives to meet AMC&D program objectives, and the termination provisions which allows either party of the OTA to terminate performance of work if they determine that the program will not produce beneficial results commensurate with the expenditure of resources.


Extent to which the cooperative agreement or other transaction has fostered within the technology and industrial base new relationships and practices that support the national security of the USA:

The OTA allows the Navy to forge new relationships with existing DoD contractors, reduces non-value added Government oversight and program costs, and also attracts firms (such as DY-4,Wind River, and Green Hill) that normally do not do business with the DoD. Using the OTA allows the Government the flexibility to operate more like a commercial entity and negotiate the terms and conditions appropriate for each agreement.


Agreement Number: N68335-00-9-0339
Type of Agreement: Other Transaction for Prototype
Title: MSU 200NAV Air Start Unit - Commercial Operations and Support Savings Initiative
Awarding Office: Department of the Navy, Naval Air Warfare Center Aircraft Division
Awardee: Hamilton Sundstrand Corporation
Effective Date: 19 Apr 2000
Estimated Completion or Expiration Date: 20 May 2002
U. S. Government Dollars: $2,500,000
Non-Government Dollars: $848,242
Dollars Returned to Government Account: $ 0
Technical objectives of this effort including the technology areas in which the project was conducted:

The technical objective of this effort is to modify the Model MSU 200 commercial aircraft Air Start Unit to create an air start unit module that will meet the dimensional, weight, and environmental requirements of the Navy’s shipboard and land-based air start systems. This module/kit will replace the major components of the current air start systems, by integrating the MaK air start module with the A/S 32A-31A tractor with air start L-Frame for shipboard use and the A/32U-16 trailer for land-based use.


Extent to which the cooperative agreement or other transaction has contributed to a broadening of the technology and industrial base available for meeting Department of Defense needs:

The use of an other transaction agreement has contributed to broadening the technology and industrial base for meeting the Department of Defense needs by identifying a business partnering agreement within Hamilton Sundstrand that could provide an air start unit capable of pneumatically starting various aircraft without auxiliary power units (APU) and with a higher level of reliability and lower operational and support costs. Hamilton Sundstrand is a known supplier of engines/power heads to the Government. It was unknown, however, that they also have a partnering agreement with a German company, MaK System Gelleschaft mbH, to produce air start units to commercial airlines around the world. The commercial air start unit would not be appropriate for military use without some modifications/reconfiguration to interface with current military systems. This type of other transaction cost sharing agreement has allowed the Government to move forward in obtaining less expensive, more reliable, commercially available components, while reducing the Government’s research, development and testing costs.


Extent to which the cooperative agreement or other transaction has fostered within the technology and industrial base new relationships and practices that support the national security of the USA:

This project was competitively selected as an FY 2000 Commercial Operations and Support Savings Initiative (COSSI) project. The COSSI mission is to implement a process that reduces DoD’s Operations and Support (O&S) costs by inserting commercial components into fielded military systems. Stage I COSSI involves non-recurring engineering, testing, and qualification of commercial components for a military application. Stage II of COSSI is the procurement of the item. The DoD issued a solicitation requesting FY 2000 COSSI project proposals, requiring cost sharing and stating that an Other Transaction would be used for Stage I. Company cost sharing reduces the cost risk to the Government. The section 845 other transaction was used because of the flexibility it affords the Government and the awardee in establishing agreement terms and conditions.


The use of an other transaction agreement permits traditional Government contractors, such as Hamilton Sundstrand, to utilize commercial business practices and its existing business partnerships in the execution of the prototype project that will help the US get better technology.
Other benefits to DOD through use of this agreement:

The provisions of the other transaction agreement also foster a “partnering” between the Government and contractor which promotes benefits for both parties involved. The Government is able to reduce the research, development and testing costs through cost sharing measures and the contractor is aware of a potential follow-on Stage II production contract, provided successful completion of Stage I, availability of funds and the support and acceptance of the revised O&S savings analysis.



Agreement Number: N68335-00-9-0442
Type of Agreement: Other Transaction for Prototype
Title: Consolidated Automatic Support System (CASS) Upgrade to Commercial Software - Commercial Operations and Support Savings Initiative
Awarding Office: Department of the Navy, Naval Air Warfare Center Aircraft Division
Awardee: McDonnell Douglas Corporation
Effective Date: 09 Aug 2000
Estimated Completion or Expiration Date: 10 Aug 2002
U. S. Government Dollars: $2,762,924
Non-Government Dollars: $1,046,361
Dollars Returned to Government Account: $ 0
Technical objectives of this effort including the technology areas in which the project was conducted:

The technical objectives of this effort are to develop, produce and demonstrate prototype upgrade kits for legacy Consolidated Automatic Support System (CASS) that will introduce Commercial-Off-The-Shelf (COTS) technology that will provide operation and support cost benefits as well as functional test enhancements. This effort by McDonnell Douglas Corporation was an FY2000 selection under the Commercial Operations and Support Savings Initiative (COSSI) Program, which is a joint Service initiative to reduce operations and support (O&S) costs in fielded systems by rapidly incorporating commercially available items.


Extent to which the cooperative agreement or other transaction has contributed to a broadening of the technology and industrial base available for meeting Department of Defense needs:

The use of an other transaction agreement has contributed to broadening the technology and industrial base for meeting the Department of Defense needs by partnering with McDonnell Douglas Corporation to provide commercial tools and interfaces which will help to achieve an open architecture. CASS was designed approximately ten years ago, before open systems technology was mature. As such, the current system suffers from problems inherent in closed systems, mostly related to lack of flexibility to modify or replace existing components, and lack of interoperability with other similar systems. This type of other transaction cost sharing agreement allows the Government to move forward in obtaining less expensive, more reliable, commercially available components, while reducing the Government’s research, development and testing costs.


Extent to which the cooperative agreement or other transaction has fostered within the technology and industrial base new relationships and practices that support the national security of the USA:

The use of an other transaction agreement permits traditional Government contractors, such as McDonnell Douglas, to utilize commercial business practices and partnerships in the execution of the prototype project that will help the US get better technology. The provisions of the Other Transaction COSSI agreement foster a “partnering” between the Government and contractor which promotes benefits for both parties involved. The Government is able to reduce the research, development and testing costs through cost sharing measures and the contractor is eligible for a potential Stage II production contract, provided successful completion of Stage I, availability of funds and the support and acceptance of the revised O&S savings analysis.



Agreement Number: N00421-00-9-0268
Type of Agreement: Other Transaction for Prototype
Title: Arc Fault Detecting Circuit Breaker for Aircraft
Awarding Office: Department of the Navy, Naval air Warfare Center Aircraft Division
Awardee: Hendry Mechanical Works
Effective Date: 21 Dec 1999
Estimated Completion or Expiration Date: 20 Dec 2002
U. S. Government Dollars: $ 484,500.00
Non-Government Dollars: $ 484,500.00
Dollars Returned to Government Account: $ 0
Technical objectives of this effort including the technology areas in which the project was conducted:

The technical objectives of this effort are to develop new, innovative arc fault detecting circuit breaker technologies, particularly focusing on the systems and methods that detect arcs in aircraft electrical systems (which can lead to fires). The Navy/FAA are particularly interested in the possibilities afforded by the detection algorithm for detecting arcing faults.


The demonstration portion of this program will culminate in the assembly of an Arc Fault Circuit Breaker prototype. The program will result in key benefits to military electrical circuit protection including an anticipated 90% reduction in electrical fires and a 33% reduction in maintenance repair time for damaged power wires. The initial demonstration platform is the C-9 transport aircraft. The project will also target another key military platform for technology insertion, the E-6B. The technology is also targeted for commercial transport aircraft such as Douglas DC-9 and the Boeing 707.

Extent to which the cooperative agreement or other transaction has contributed to a broadening of the technology and industrial base available for meeting Department of Defense needs:

Hendry is currently an industry leader in the development of arc fault detection technology for low voltage (28 volts) direct current systems. However, had an other transaction for prototype agreement not been awarded, DoD and the FAA may not have had access to Hendry’s insight and experience, which would have ultimately resulted in a potentially inferior product.


The recipient of this other transaction for prototype is a commercial firm that has not previously worked with the DoD. Hendry does not currently have a CAS-approved accounting system. Because Hendry has no other current Government contracts and does not plan to continue proposing for future Government procurements, it is not in the company’s best interest and would unduly burden it to set up and maintain the required cost accounting system for this effort. Further, Hendry is a small company and would not consider doing business under more traditional Government contracting vehicles. An other transaction for prototype allows Hendry the flexibility the company needs to work with the Government.
Extent to which the cooperative agreement or other transaction has fostered within the technology and industrial base new relationships and practices that support the national security of the USA:

The award of an other transaction in this instance has allowed the Government and the contractor to work closely together in an interactive relationship. This development could potentially save the Government more than ten million dollars in maintenance costs per year due to electrical arcing wire damage and a 90% reduction in aborted missions caused by electrical fires. In addition, although the project is managed by the Navy, the FAA is also providing funding to this potentially invaluable project for aircraft safety The FAA’s interest in this program could result in retrofitting for all commercial aircraft and the requirement that the circuit breakers be incorporated in all newly manufactured aircraft.


Other benefits to the DOD through use of this agreement:

The use of an other transaction agreement has resulted in additional benefits, not addressed above. Arc fault detection technology is a recent development, and the methods of identifying how an electrical arc starts fires are still under investigation. However, the promise of detecting arcing faults and interrupting them before a fire starts is a great concern within the Navy maintenance and air safety community in general and within the C-9 and E-6B communities specifically. If it is demonstrated that arc fault detecting circuit breakers are feasible in the near-term, it will almost certainly influence the Navy’s future acquisition strategy and will most likely be incorporated into aircraft upgrades with an eventual commercially manufactured product. In addition, a successful prototype may influence and be integrated into commercial aviation. Therefore, the results of this prototype effort will be directly applicable to both military and commercial aircraft.


Agreement Number: N00421-00-9-0446
Type of Agreement: Other Transaction for Prototype
Title: Bipolar Nickel-Metal Hydride Aircraft Battery
Awarding Office: Department of the Navy, Naval air Warfare Center Aircraft Division
Awardee: Electro Energy Incorporated (EEI)
Effective Date: 25 May 2000
Estimated Completion or Expiration Date: 24 May 2002
U. S. Government Dollars: $976,407.00
Non Government Dollars: $976,407.00
Dollars Returned to Government Account: $0
Technical objectives of this effort including the technology areas in which the project was conducted:

The technical objectives of this effort are to develop and produce a prototype bipolar nickel-metal hydride aircraft battery. Bipolar nickel-metal hydride batteries are more beneficial than present day aircraft batteries for the following reasons: (1) extended battery life (two to three times increase up to 10 years); (2) lower weight and volume (projected battery weight savings of 26 lbs. for F/A-18 and 32 lbs. for A/V-8B, V-22 and VH-60 presidential helicopter); (3) maintenance-free operation; and (4) elimination of exposure to hazardous materials. Furthermore, nickel-metal hydride aircraft batteries are made from environmentally friendly materials.

EEI will develop and demonstrate a high rate, 7.5 ampere-hour, 24 volt, sealed, bipolar nickel-metal hydride prototype main aircraft battery that does not utilize cadmium and lead which are both toxic elements. In the event that bipolar nickel-metal hydride prototype battery is not feasible, a prismatic nickel-metal hydride prototype battery will be fabricated.
Extent to which the cooperative agreement or other transaction has contributed to a broadening of the technology and industrial base available for meeting Department of Defense needs:

A primary use of Other Transactions has been to increase the DoD’s access to dual use technologies by supporting and stimulating research that has both commercial and military application. This program aims to do that.


EEI is currently an industry leader in the development of battery technology. However, had a Section 845 agreement not been awarded, DoD may not have had access to EEI’s insight and experience, which would have ultimately resulted in the delay of the development of a more environmentally friendly aircraft battery. Forging this relationship with one of the elite in the battery industry is an intelligent business decision for DoD and may result in future procurements with EEI.
Extent to which the cooperative agreement or other transaction has fostered within the technology and industrial base new relationships and practices that support the national security of the USA:

Although the recipient of this other transaction prototype is a for-profit firm that has previously worked with DoD agencies, award of an other transaction in this instance has allowed the Government and the contractor to work closely together in a teaming relationship to facilitate a successful outcome for this project. Given the likelihood of success, developing a teaming relationship now increases the probability that EEI will be willing to continue to work with DoD in the future.


Other benefits to the DOD through use of this agreement:

Nickel-metal hydride battery systems have received considerable attention since 1990 for portable electronics. As this technology will not be capable of meeting the high current cold temperature requirements of some of the Navy direct engine start applications, the Navy’s proactive actions will provide future benefit. If it is demonstrated that bipolar nickel-metal hydride aircraft batteries are feasible in the near-term, DoD will ultimately transition from gasoline power to the more environmentally friendly and economic battery power. Therefore, the results of this prototype effort will be directly applicable to both Navy and commercial industry.



Agreement Number: N00421-00-9-0275
Type of Agreement: Other Transaction for Prototype
Title: Fabrication of a Prototype UHF-Band Transmitter Utilizing Silicon Carbide-Based Modules
Awarding Office: Department of the Navy, Naval Air Warfare Center Aircraft Division
Awardee: Northrop Grumman Electronic Sensors and Systems Sector (NG ESSS)
Effective Date: 17 Dec 1999
Estimated Completion or Expiration Date: 16 Dec 2000
U. S. Government Dollars: $ 1,491,430
Non-Government Dollars: $ 479,661
Dollars Returned to Government Account: $ 0
Technical objectives of this effort including the technology areas in which the project was conducted:

The technical objectives of this effort are to develop and fabricate a Silicon Carbide-based transmitter using transmitter modules built up from SiC-based transistors. Since SiC transistors offer the possibility of greater radiated power at reduced weights with lower cooling requirements, it is expected the same will be true with the fabrication of a transmitter. This transmitter would be designed to be compatible with either the ADS-18 Array currently being tested or with the UHF Electronically Scanned Array currently being developed under NAVAIR and ONR auspices.


Extent to which the cooperative agreement or other transaction has contributed to a broadening of the technology and industrial base available for meeting Department of Defense needs:

Development of new, innovative radar transmitter technologies, with particular focus on the systems and methods that will produce higher power levels with lower cooling requirements than current generation silicon or silicon germanium-based systems, offer immense potential benefit to the technology and industrial base available for meeting DoD needs.. Since silicon carbide (SiC) based amplifiers can tolerate higher heat loads and can therefore provide greater power than older technology, amplifiers using silicon carbide substrates is of particular potential benefit to DoD Northrop Grumman ESSS is a leading developer of SiC components and has previously demonstrated the feasibility of SiC approach This development could potentially save the Government more than ten million dollars in weight reduction costs during the E2-C’s Radar Modernization Program’s E&MD phase.


Extent to which the cooperative agreement or other transaction has fostered within the technology and industrial base new relationships and practices that support the national security of the USA:

The recipient of this Other Transaction Prototype is a for-profit firm that has previously worked with DoD agencies. The award of an Other Transaction in this instance has allowed the Government and the contractor to develop a close working relationship that increases the probability of a successful outcome for the project. Further, in a severely cost constrained environment, an other transaction allows NG ESSS to fund some of the effort in development of the prototype.


Other benefits to the DOD through use of this agreement:

Silicon carbide technology is a recent development, and the methods of manufacturing amplifiers, power modules, and transmitters are still under investigation. However, the promise of higher power levels for a given size and weight within pre-existing cooling limits makes this a very attractive technology for P3I application within the Navy tactical air community in general and within the E-2C Hawkeye community specifically.


The results of this prototype effort will be directly applicable to the Navy and Air Force’s next generation of airborne surveillance radar.

Agreement Number: N00024-98-9-2304
Type of Agreement: Other Transaction for Prototype

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